Is DoorDash Stock a Portfolio Must-Have Post Solid Q4 Earnings?

Core Insights - DoorDash (DASH) shares have increased by 3.9% following the release of its fourth-quarter 2024 results, driven by higher Marketplace Gross Order Value (GOV) and growth in advertising revenues [1][4] - Over the past 12 months, DASH shares have surged 70.1%, outperforming the Zacks Internet - Services industry's return of 25.7% and the broader Zacks Computer & Technology sector's appreciation of 23.6% [1][4] Financial Performance - The company reported a year-over-year increase of 19% in total orders for Q4 2024, reaching 685 million orders [4] - Marketplace GOV grew by 21%, totaling $21.3 billion, indicating strong demand across platforms [4] - The Zacks Consensus Estimate for 2025 earnings is$1.94 per share, reflecting a year-over-year increase of 568.97% despite a 2% decline over the past 30 days [12] - The estimated revenue for 2025 is $12.73 billion, suggesting an 18.74$10.72 billion [13] Strategic Partnerships and Expansion - DoorDash has expanded its offerings beyond restaurants, launching a commerce platform and enhancing its grocery delivery services [5] - A partnership with The Home Depot allows for on-demand delivery of home improvement essentials, with delivery in as little as one hour [6] - Collaborations with various partners, including Ibotta, Walmart Canada, Wegmans Food Markets, and Lyft, have broadened DoorDash's reach and service offerings [7][9][10][11] - The integration of Ibotta's digital promotions into DoorDash's platform provides personalized savings for customers and enhanced opportunities for CPG brands [8] Valuation and Investment Potential - Despite strong growth prospects, DoorDash stock is considered overvalued, with a Price/Book ratio of 11.03 compared to the industry average of 5.96 [14] - The company holds a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a favorable investment opportunity [15]